HC determined that the petitioner-bank's security interest,...

HC determined that the petitioner-bank's security interest, registered with CERSAI on 09/07/2011 prior to the tax authority's attachment order on 02/02/2015, takes precedence under Section 26-E of SARFAESI Act. The tax authorities failed to register their attachment order or provide sufficient notice, rendering their claim invalid. Consequently, the bank's e-auction sale to the respondent was upheld, granting clear title to the secured asset free from any encumbrances claimed by the tax authorities. The petition was allowed, establishing the bank's priority over the state's dues.